Proposed budget a solid starting point for lawmakers

Early reaction to Gov. Andrew Cuomo's proposed 2013-14 budget has it receiving fairly good grades. The $137 billion budget, sans the additional spending proposed for Hurricane Sandy relief, holds spending to a modest 2 percent, does not raise taxes and increases school aid by 4.4 percent.

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Posted Jan. 24, 2013 at 2:00 AM

Posted Jan. 24, 2013 at 2:00 AM

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Early reaction to Gov. Andrew Cuomo's proposed 2013-14 budget has it receiving fairly good grades. The $137 billion budget, sans the additional spending proposed for Hurricane Sandy relief, holds spending to a modest 2 percent, does not raise taxes and increases school aid by 4.4 percent.

The main thrust of the governor's proposals continues the path set last year: hold the line on spending and taxes by streamlining state-run operations and generate new revenues.

In the process, Cuomo has managed to push some of his more liberal initiatives into his budget, including increasing the minimum wage from $7.25 to $8.75 an hour; spending about $36 million to implement his new gun control law; increased spending for affordable housing for lower-income residents; and adding $19 million to the state's Environmental Protection Fund.

That increase in the minimum wage is expected to generate $1 billion a year in new revenue. But the new revenue is coming directly from the pockets of business owners, which does not sit well with state Republicans. And the gun law that was rushed into passage also carries some political weight that needs to be balanced.

But these proposals come in the context of a budget that promises no tax increases and, at least on the surface, controls spending by eliminating waste and redundancies. That's a solid starting point for the budget's next stop, the Legislature, for hearings and closed-door negotiations.

Moreover, some early indications from the GOP suggest a relatively fast track for budget approval.

Senate Republican leader Dean Skelos told the Associated Press: "I think the fact of no new taxes is great "¦. I don't see anything that's a huge stumbling block right now." That's encouraging. And it reflects the more-or-less balanced approach the governor took in developing his proposals. For example, Cuomo was smart to offset his minimum-wage proposal with a number of incentives for small business, such as the $50 million to help startup businesses. That sets the stage for the Legislature to push for even more job growth incentives.

In fact, Skeklos told the New York Times that Republicans would look for more tax incentives for businesses during the process.

Also needing some vigorous debate are some of Cuomo's revenue proposals. Take, for example, the idea that making it harder to plea-bargain traffic tickets will sharply increase revenue. Or that nearly a billion dollars that can be saved by consolidating some government departments or streamlining operations.

And then there's the complex, and critically important, "Stable Rate Pension Contribution Option." This proposal allows local and school governments to pay pension costs within a fixed percentage range, avoiding the wide variations in rates they've experienced in recent years.

If fully vetted and effectively implemented, this could ease the fears that municipalities and school districts have expressed about keeping pace with pension obligations.

Based on early reaction to the governor's proposals, it appears the negotiating process will begin in earnest. The range of proposals — effectively balancing revenue initiatives with cost-cutting measures — has provided a number of give-and-take negotiating points.